We’re recommending shares of IMAX Corporation (IMAX), currently trading at $8.31 (06/20/06 close). The opening of Superman Returns presents a near-term catalyst for the stock, but we also believe shares of IMAX represent a solid longer term investment opportunity (with a moderate level of risk).

Company Description
IMAX is a leading entertainment technology company whose activities range from the design, leasing, marketing, maintenance, and operation of IMAX® theatre systems (produces bulk of revenue) to film development, production and distribution of large-format films. IMAX has more than 250 IMAX affiliated theatres in 36 countries. Approximately More than 100 of these theatres are equipped with IMAX 3D technology.

Why We Like It
*Proven, highly unique entertainment product/service (company began in 1967)
*IMAX theatres generate big per screen sales – critical in what has been a challenging box office environment over the past over the past 12 months
*Geographic diversification (IMAX theatres in 36 countries)
*Down 25% from 52-week high of $11.10
*Announced that it was “seeking strategic alternatives” back in March
* Superman Returns will run in IMAX and IMAX 3D theatres and early reviews of the film have been hugely positive. This alone could give the stock a nice little pop next week if the film opens big.